Samsung Life Insurance and Samsung Fire & Marine Insurance rose on July 9, buoyed by expectations they may once again sell part of their stakes in Samsung Electronics to remain in compliance with ownership limits imposed under Korea’s Financial Industry Structure Improvement Act (FISIA).
The rally followed Samsung Electronics’ announcement on July 8 of a 3.91 trillion won ($2.83 billion) share buyback, with 2.81 trillion won of those shares to be retired “as quickly as possible” to enhance shareholder value. The move is seen by investors as likely to raise the insurers’ proportional stakes in Samsung Electronics, potentially triggering another round of strategic divestments.
By 11 a.m. on July 9, Samsung Life shares were trading at 132,100 won, up 1.3% after gaining 3.08% the previous day. Samsung Fire jumped 8.3% to 477,000 won over the same period.
According to Daol Investment & Securities, the buyback could nudge Samsung Life’s stake in Samsung Electronics from 8.51% to 8.57%, and Samsung Fire’s from 1.49% to 1.5%, lifting their combined holding above the 10% threshold permitted for financial companies under FISIA. Surpassing that limit requires prior approval from the Financial Services Commission.
To avoid regulatory complications, the two insurers are widely expected to sell off a portion of their Samsung Electronics shares before the buyback is completed—mirroring a similar block trade they executed in February, just ahead of a previous buyback and cancellation. At the time, the insurers disclosed the sale was intended to “preemptively eliminate potential legal risk.”
If they proceed with a similar strategy, they could raise around 250 billion won at current share prices—funds that could be deployed for shareholder returns or internal restructuring.
Uncertainty remains, however, over whether the insurers will opt to sell this time and how the final size and timing of Samsung Electronics’ cancellation program will play out.
Meanwhile, Samsung Electronics’ stock has come under pressure. Weaker-than-expected second-quarter earnings and recent comments from U.S. presidential candidate Donald Trump about possible tariffs on semiconductors have sent the stock down for four straight sessions.
Analysts say the company may have hit a short-term bottom. Yet, persistent delays in monetizing high-bandwidth memory (HBM)—a critical component for AI infrastructure—have led some brokerages to revise earnings forecasts lower for both 2025 and 2026. The buyback will also mark the completion of Samsung’s previously announced 10 trillion won repurchase program.
Investors are now looking to Samsung’s July 31 earnings call for guidance. Goldman Sachs and JPMorgan have urged investors to monitor updates on HBM3E and HBM4 development, as well as the performance of the company’s struggling System LSI and foundry units.
